Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to Biotricity’s First Quarter Fiscal 2024 Financial Results and Business Update Conference Call. Today’s conference is being recorded.

At this time, I would like to turn the conference over to Debra Chen, Investor Relations. Please go ahead, ma’am.

Debra Chen

Good afternoon, everyone, and welcome to Biotricity’s first quarter fiscal 2024 earnings call.

first all XXXX period figures that date. Biotricity’s XX, on will reminder, end so XXXX, presented a quarter ended fiscal June reflect As for this financial its release, Earlier, earnings company results. issued which the highlighted and operational press www.sec.gov. available Form copy Relations the on XX-Q the financials and section A with filed at and Investor have website, posted on been release Biotricity’s the the press full of is of SEC EDGAR on

subject may contains as Before projected cause actual future company’s in required. discussion risks any not listeners remarks, results those statements. that current uncertainties like management’s forward-looking update from does I’d Biotricity events. materially statements to are that these to remind statements undertake beginning to forward-looking and except to views the statements formal can such respect to reflect that differ today’s forward-looking with Any

pleased call CEO, this turn Dr. At Al-Siddiq. to and Please Waqaas to I’m go ahead. Biotricity’s Founder point, the over

Waqaas Al-Siddiq

welcome us and Debra, thank you, I teleconference. fiscal Thank our for you, joining first XXXX quarter today. you everybody, to

earnings in revenue year-over-year very a quarter solid in reported we experienced press a As and operating metrics. with improvements key growth release, our

results on management. observe growth we Specifically, fees, all reduction positive and firm we strides device towards while making are I given expense cost grasp consistent maintaining from flow gross our demonstrated and the can confidently a that margins sales technology recurring assert cash positive quarter-to-quarter.

demand the continued market and chronic drive of prevention and a suite increasing focused to management. interest of on disease From cardiac perspective, the our adoption products

force rising XX.X% XX.X%. in launched improvement, Notably, revenue as growth. also June diagnostic XX.X% expansion announce for yielded I’m remarkable period in last an geographic gross in year-over-year over commercialization the monitoring impressive progress during of has have to a and of solutions year seen that same reach, our products. sales efforts margins XX significant to development and post-diagnostic XXXX, have The have pleased expanded from XXth, tremendous the Our contributing our in to U.S., states our and our sales remote

reduction while our financial diligent our We that innovate investors. structure utilization XX% management our growth of team strong a reduced announcing million. by to the and or a CEO revenue net Through This and net dedication deliver board, growth approach Biotricity, of create testament and as consistently per achieved management, our XX% of our to share. of and automation demonstrated or quarter of year-over-year a share this team. role technology accomplished $X.X basis. on $X.XXX $X.XXX has loss results this At we’ve proprietary we successful achieved cost and all discipline, we driving AI to for execution, quarter-by-quarter loss is million, by also creation $X hard million across transformative and per SG&A $X.X a the responsibility serve exceptional been to while to work our a The value products as and as margin ensuring my from healthcare

complementary our observe we’re to to model growth. continued platform and BioSphere Turning products, thrilled

interest industry-wide a thousands over monitored and Biotricity app we and billion in quarter, stroke. both products. among Biotres existing for X and milestone Bioflux the atrial heartbeats significant attract cost Biocare has a continues has garnered Earlier downloads, to customers. between Our of fibrillation, Biotres of new announced leading

early benefited exceeding Over XX,XXX $XXX with intervention savings our resulting over patients have million. efforts the cost diagnosed two providing in past and years, afib,

subsequent diagnosis also exceeding strokes, and preventing facilitated billion. By late savings has $X.X Biotricity

pushing solutions for care, explore what Our but redefining outcomes. novel cutting-edge harness data boundaries research medical innovation can development, enhancing avenues intelligently of patient diagnostics remains to as the commitment and AI-driven unwavering only we we’re also healthcare Through to not achieve. and

care. that month, announced in cardiac technology AI remote expanding our last development are we we Just

predictive of leveraging at the are profiling, and AI also relationships comes for We our This provide patient have Amazon to prevention. and with heels strengthened that suite proprietary enhance us industry the to Google. improve disease revolutionize new disease healthcare monitoring of a management both tools announcing technology we

AI grow by billion to to market $XXX.X View Research. to according Grand opportunity is healthcare The projected XXXX,

established Our TensorFlow, professionals to allow us proprietary critical capabilities elevate our company most infrastructure, the rapidly handling the identifying strong AI learning of near believe serving foothold, engine. enable has patients and This having a combination us healthcare care data our This we of a allows quality big cardiac improve already healthcare a workers that number the model in more larger while exponentially future, to of will In technology. the built data. cardiac combines AI model already continuous support cardiac while Google’s will patients. to powerful AWS a

numbers the technology of As our shortage pressing further growing healthcare patient alleviate stress this issue. help could professionals,

sales charting We the of and devices have so do our our a subscription-based profitability. monitoring more to engineered cardiac only patient and service, the recurring a and our improve increasing to in remote few patients. clear revenue path ramp-up technology to past increasing led that to care but outcomes, This has not quarters our of manner supports over

to With that, CFO, I’ll John turn Ayanoglou. the our call over

John Ayanoglou

Waqaas. you, Thank

which insight the your in first are unaudited. fiscal the am provided I operational quarter review discussion XXXX that you of Given to key going matters, highlights,

healthy devices Biotres grow Our to pace. our and recurring continue Technology-as-a-Service subscription-based a at revenue from Bioflux

XX.X% year-over-year the first increased XXXX, million. to XX, $X for ended Revenue quarter June

quarter. these for the of in XX.X% AI. percentage our in the use margin technology through gross of to from relate largely some to XX.X% were and gained Our was reductions efficiencies to the attributed related able increase year quarter in achieve fees to which an to providing costs prior we margin processing services, in profit ended gross XXXX, June This XX, compared increase corresponding was as

total approximately quarter’s margin revenue. the in time. XX% or we gross where expected anticipate proportion fees continued mix increasing better of Given of fees consistent blended Technology an improvement XX% on an revenue comprise gross to and evolving margin technology comprised overall are technology revenue, fees of over

totaled Gross a $X.X $X.X from million XX% up profit ago. million, year

the common to three Net compared XXXX, in was million loss attributed June year. prior during XX, quarter million $X.X comparable net ended for months the the a $X of loss to stockholders

call from our in our June, or two in mentioned have we come revenues sources segments. As

fees, technology our monitoring service recurring services. which generated subscription First, our diagnostics and Biosphere fees, by are

quarter technology our one million. growth XXXX, fees XX% superior customer device ease part, services, single number of retention first rate volumes simple use extraordinary and in our $X.XX its our diagnostics. support the strong approximately For which hardware superior cardiologist-friendly fiscal tech In and rose about and reflects to of services, speaks excellent customer XX%,

device sales, of and our which, designed fiscal all at were revenue device $XXX,XXX. comprised total second hardware, which Our are our segment in-house. sales software, reported X.X% sales revenue like is first our quarter XXXX, proprietary is of the In

quarter towards year-end our are positive notice And We are continuing pointing we our are all just a flow. growth. to upwards. achieving taking work Indeed, things turn in to financial the of starting discussed call, cash better fundamentals for our hard like in fourth

I Waqaas call back will now turn for the comments. closing his to

Waqaas Al-Siddiq

Thank you, John, for that report.

for In summary, there’s the are and lot Biotricity that to look of as excited we markets the we a involved be addressable future into in.

remote AI our with to leadership Our to AI begun relationships segment commitment validating and We’ve Amazon position, into care. cardiac and Google, has development accelerate. strengthened

assist our revolutionize enhance the disease these healthcare In we management, for centralizing patient the us vital discerning points capacities improve industry AI and empower cardiac data most data the prevention. we models’ profiling, patient load, higher envision can to healthcare significantly managing experts while a so by future, and points efficiently will that disease

to accelerate Looking and XXXX, products, remains of our our to sales service remote focus draw of profitability. subscription-based recurring devices towards and threefold calendar of rest and of cardiac such, the year ramp increase revenue, as path our clear monitoring our a suite

That concludes I’ll our turn now remarks. Thank the the questions. operator call over opening to for you.

Operator

Thank you.

from be Wainwright. Please Dede with question proceed session. question-and-answer now Instructions] a will Our with your conducting H.C. first We [Operator Kevin comes question.

Kevin Dede

for that if the ramp pretty Appreciate service I seeing and see my commentary and thanks Nice it. the taking line measure Waqaas, devices some you’re offered bit mix, suggests fees sales isn’t those are into revenue little the to are clear device that we and Hi you a but relative dominating wondering what John could the of the on up. was devices. the top mix that types that and question. digging that sales sale specific device consistent fee dig

Waqaas Al-Siddiq

I breaking yet. down question, that Yes. Kevin. really Great aren’t we mean,

think what of is We is tell that revenue the Bioflux. can future I the bulk you I will in quarters still

back We that was about we same. where have refer I think mix Biotres did Bioflux you press coming to But terms related that to SaaS the the ago of still will revenue back release of that we up. how and We and – much revenue in months is I couple broke Biotres. a out

revenue. that products it’s make more time a still of rates around Biotres year. up has as up and the your product on, become relates about making And start have better in these But which other internally of years, the to for And one Bioflux that a it breaking and will it’s been four only to want out going when so become a clear mix. bulk for And goes market. handle the on is to make we and they start going for we has of it some been what. that’s around in information pick early like to available as sure still products exactly, that days before talking they’ll because course, it we we

Kevin Dede

enhanced centered emphasizing expanding really in of to cardiac imperative I’m And address you’re of as ability expenditures, on Okay. wondering of The the in solutions. past a had what portfolio deliver calls sort nephrology. R&D ancillary Fair been the – couple enough. this your to product how Appreciate containment, such AI cost that. era issues your vis-à-vis you’ve strategic of in Waqaas

you So where just your of about development sort putting if us help emphasis. just I could was you’re think wondering

Waqaas Al-Siddiq

Yes. Absolutely.

we’ve right, that of invested we’ve effort six dollars. in we sunk already nine been – our really months and we’ve bunch launched development to has the last grown already you done focusing those is, as we’ve been what months, So know, a products TAM in so and

fruits more we’re we of of that commercialized, now the for to products going time, right? see revenue that, of to period So become longer come see right, as a want those in,

two R&D enhancing terms our of right? One we meantime, are can management the of the in ultimately right? you the the automation we’re like go cost expand So product, on that on terms and perspective In dollars, focusing stuff and is, we product is focusing in faster. in identified, things

on we’re – some is improvements took applying we right? product can the directly product take seeing side existing we that that that from where can efficiencies the when a portfolio, right? the expense reduction there’s some stuff of So related, to are side, of we what within on seeing and apply we’re margin AI, automate still at workflow we the look perspective So related the

effectively operating better to taking it the cost we into, we there’s into know that down okay? our number is cost what we’re example, come X%, when and an AI, because we’re workflows One data reduction area measurable by means, a So what thinking saying, drive, if that investing why practical applying we right? we so enhance are efficient go automation that at automation, that our we do down, this will better taking so and R&D products that that and So know of We do And and we know know have, provide right, more they means this X% right? existing about something we’re implement a if direct will a right? hey, a our spend and if level, result right? dollars that we dollars, will we is that’s that drive, COGS that direct initiative and it’s is meaning support get, X we x,

Then talked for hanging for is these in we the invest last looking to continuing where right, again, and and and other areas talk R&D in we I it, about so market, how and technology, then at we about can looking low we area right? that areas, enhance fruit we’re of nephrology our take collect grant, some areas, another it our of looking at we’re NIH course, call apply other we’re can revenue are that, when

or for platform. and approach in know directly projects or where but apply we will get drive a driven to can we So investment had because R&D was in we the reduce with now revenue platform try direct the universities we grants market can vision where it’s can, on built. building before that a dollars revenue R&D can see the focused course That – that R&D, in the okay, now a build to of we work – we’ve platform, much built or invested from? further two increase we years product and platform the where can we find how very the that very we our we can, that we and And how is by, go it’s commercialize how is or cost, very

applying Now and we can it’s areas about revenue know in enhancing where get we it back from.

Kevin Dede

the appreciate color I Thanks. that. Okay. on

little I back go development, a Now, topic. the to business always on this

if what more that. You of of states. number I’m mentioned sharing wondering address we are number you’re can of Or just physicians measure the hope of fiscal keep quantifiable of on your XX the you year, maybe we balance the some comfortable eye sort offering targets coverage you for or are of monitor. the comfortable clinics, an so sort if that to can

Waqaas Al-Siddiq

Yes.

focusing will XX the now we’ve think to key optimize build is we have network, exposure, veteran on can relationships, what’s would and announce march presence. on that put announcing do out course, – So markets, on as we’re And some XX our certainly effort What we guidance have we’ve we’re been network we as okay, I towards what is, mean, that sure to say our that we But added have out not the stuff. because markets. which that will state usually we of trying say, parts, to providing grow I distribution going we’ve sales states. in when are I and the we it, key I a is is to relationships in addressed that seeing force, this building that really what happen, goal obviously concerted say these making as is we we and distribution

XX So have essentially have partners they distribution coverage. in, state people

And when a that areas focus of size, us, within But have for you not on you partner do work reps. we different we’re where and with distribution groups to different division covered.

what relationships quarters state that can is what So answer of we can XX to announce coverage, we efforts that expand we’ve of think with and over our we get our made, some it going and states how as we the that and couple quickly primary, will, course, how that as look say, for direct most the us I our we that next will in have that, to I opportunity. work like goal, sales to the and everybody. areas notify possible the is as focusing And of

Kevin Dede

it sequential sustainable we what think into. progress that. The Couple gross will expect approaching, absolutely Okay. mentioned how from I John, of I I’m – a financial we perspective. know of margin, questions, I the wondering understood the to maybe chime on time that. XX% might margin, like I you great Is think, John happen. should see think I’m sort that just frame wondering

Waqaas Al-Siddiq

identifying is think weren’t that the this I So stuff. that happening we is before even piece

and of few different margin is, more consistent on So announced mix between device handle have provide as of you see right, percent. XX-ish a SaaS revenue thing going device the SaaS versus that these things, a sales and more we we’re – has to color. The margin, as get we’ve sales release, last our had in press

now we start have X% in long revenue once it terms I of how And a going build to say to and SaaS-related tell to will but steady will rate announcing creep still margin we your steady-state device, have SaaS that? essentially that quarter, that when And that will SaaS that and expect closer margin. that up the going your think We mix. forward, every see would and you around that from would eventually, I steady towards I about be rate. revenue to get being that we I be, say we as no, can or that X% will being side you that margin are state. something to you on of state So think do your we is to announce predict XX%

Kevin Dede

Okay.

level this on just and – OpEx the the you quarter. almost the million if I’m cost reduced – side, $X think of you wondering expense controls On from OpEx sustainable? March is eliminated

Waqaas Al-Siddiq

I commercial done, which So a to done corporate going I operations on services be fantastic and is it of and call about a purely think I wouldn’t we on quarter, it’s what have and a management to so this doing that we have cost-cutting, operations cost-cutting, what is is we’ve which forward. is and going level. are think what team, optimized team, And we focusing a at on delivering our focusing certain focus account sales. indicative efficiency

and I a allowed And We rate processes which reasons. million grew revenue look to we everybody, run think, size always procedures. and milestones a at and it and they were for are achieved us organization and the a at companies, these milestone, apply we to for there’s basically milestones more $XX

the quarter, our continue expect be maintained. able grow, are seeing expenses that we we moving costs going our but are and But to expect Thank those. the if past that So this growing, ratios are we be forward, to you. in we’re to ratios to

Operator

Thank at or for we’ll you. no are conference you any to this questions turn over remarks. There back the closing time. additional further Gentlemen,

Waqaas Al-Siddiq

for questions everybody, any If are reach our feel to out or joining other that free you you, up available. call. are to we if have conference always information guys other you pop for, are any looking Thank us, there that please

website our channels. You any through our e-mail us or of through can reach social or via LinkedIn or

and year. very rest about again, excited the of we’re you Thank the

John Ayanoglou

you much. Thank so

Operator

thank Thank you. you That does We conclude for your today’s conference. participation.

You disconnect. may now

Biotricity (BTCY) 15 Aug 232024 Q1 Earnings call transcript